Renewable Energy Push Accelerates as AHG, NEOM Seal Landmark Deal for Oxagon Industrial Hub
Oxagon, the reimagined industrial city of NEOM, has taken another decisive step toward operational readiness with a landmark land lease agreement signed with Abdullah Hashim Industrial Gases & Equipment Co. Ltd (AHG).
The deal marks a phased investment of SAR 600 million to establish a state-of-the-art industrial gases production and distribution facility within Oxagon’s Industrial Quarter.
A Strategic Boost for Oxagon’s Activation Phase
Scheduled to break ground in February 2026, AHG’s project will be developed in multiple phases. The first phase will include essential industrial gases infrastructure, office space, warehousing and distribution capabilities.
Operations are expected to begin by late 2026, with additional phases slated for 2028. The facility is set to act as a catalyst for Oxagon’s activation phase, ensuring that tenants can begin seamless production as the industrial district comes online.
Driving NEOM’s Sustainable Industrial Transformation
The partnership underscores Oxagon’s growing readiness and its commitment to supporting Saudi Arabia’s shift to a diversified, future-focused economy.
According to Vishal Wanchoo, CEO of Oxagon, leveraging AHG’s industrial expertise will help create a streamlined local supply chain, enabling cleaner manufacturing practices and supporting the Kingdom’s sustainability ambitions.
AHG Group CEO Khalid Abdullah Hashim emphasized the company’s commitment to providing cost-competitive, high-reliability industrial gases to both international and local investors.
The agreement reflects AHG’s long-term investment in low-carbon gas production aligned with Oxagon’s clean industrial transformation.
Green Industrial Gases Powering a Low-Carbon Economy
As Oxagon attracts new industries across manufacturing and transportation, demand for industrial gases is expected to rise sharply. AHG’s facility will localize production of essential gases, reducing reliance on long-distance imports, cutting transport-related emissions, and boosting supply chain resilience.
The phased plan includes the production of green oxygen, nitrogen, argon and hydrogen—key enablers for sustainable manufacturing. This green-energy-aligned output will help global manufacturers reduce operating costs while achieving environmental targets, particularly around Scope 3 emissions.
Strengthening NEOM’s Long-Term Growth
AHG has already been a crucial partner in NEOM’s early construction activities, supplying industrial gases and equipment across northwest Saudi Arabia. The new Oxagon facility will deepen that contribution by supporting tenant infrastructure development and generating specialized jobs in the industrial gases sector.
Aligned with Vision 2030, the project will elevate GDP growth, enhance local skill development and fortify the Kingdom’s leadership in clean industrial innovation.
